Key Points
NEW DELHI : Indias steel exports are likely to maintain their upward trajectory through the ongoing first fiscal quarter as the election season has softened domestic demand for the alloy..
Some analysts predict India will shortly return to being a net exporter of steel owing to a deceleration in domestic demand in the runup to the national election..
India, which was a net exporter of steel till October, started to turn a net importer in November, when imports for the first eight months of the year (April-November) stood at 4.3 mt, 0.3 mt more than the exports..
Citing data of domestic steel companies during state assembly elections last year, Ritabrata Ghosh, vice president, sector head, corporate sector ratings, at Icra, said trends since December reveal a marked slowdown in consumption growth to 6-7%..
The recent export increase can be linked to a decrease in domestic demand, likely stemming from a slowdown in infrastructure project implementationsa typical occurrence before a general election," said Ranjan Dhar, chief marketing officer, ArcelorMittal Nippon Steel India..
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